Our Stakeholders

We touch the lives of many people through our businesses. We welcome honest discussion with individuals, groups and advocates who represent community, environmental and social interests. Issues of concern brought to the attention of PepsiCo will be considered with a view toward our businesses and our sphere of influence. We interact with many stakeholders.

Our Consumers
Through our Human Sustainability initiatives, we offer our consumers a wide range of products that deliver great taste, nutritional value, convenience and affordability. We are committed to playing a responsible role in health and wellness by encouraging consumers to adopt healthy, active lifestyles, beginning with the products we offer. Each year, we invest in innovation to better serve consumer wants and needs through new products and packaging. We continually expand our distribution network to make our products more widely available. And we work relentlessly to improve productivity so we can offer affordable products to a broad range of consumers. We have toll-free telephone numbers that consumers can call with questions or comments. The call numbers are included on our product packaging. We also provide a number of websites where consumers can get information about our brands, including nutritional content and answers to many other questions about our products

Our Communities
We recognize our responsibility to be a contributing member of our communities, on both a global and local level. We operate our businesses responsibly and seek to be a positive force. We support our communities through our businesses by contributing to not-for-profit groups and by working with organizations dedicated to improving the lives of people. We have advisory groups that focus on health and wellness, African-American, Asian and Latino/Hispanic issues. We also work to be good stewards of the environment. In areas of the world where water scarcity is an issue, we are working to protect the resources we've used, and we are partnering with nonprofit groups to promote clean water access.

Our Employees
Our employees are the greatest factor in our success. Their hard work, dedication and resourcefulness enable PepsiCo to compete effectively, serve the needs of customers and deliver the results our investors expect. Our Talent Sustainability principles reflect our commitment to providing a work environment that allows our employees to achieve professional growth and personal fulfillment. We ask our employees to respond to an "Organizational Health" survey generally every other year. Topics include benefits, working conditions, diversity and inclusion initiatives, and career development, among others. The results of the survey are shared with associates, and action plans to address issues are developed and made part of performance goals.

Our Customers
Our retail customers are supermarkets, grocery stores, mass merchandisers, club stores, drugstores, gas stations, convenience stores, restaurants, foodservice outlets, vending machine operations and others who carry our products and make them directly available to consumers. We provide our products as well as marketing support that contributes to their growth, profit and positive cash flow. Retail consolidation and the current economic environment continue to increase the importance of major customers. We have dedicated teams for our customers, partners and suppliers, and interact with them on a regular basis. We have a team dedicated to supplier diversity, including working with our women and minority suppliers to build their capabilities and business with PepsiCo. Our website includes a dedicated site for information on our women and minority supplier diversity program. Pepsi Cola North America has partnered with Sam's Club over the last three years in a national, school-based recycling program.

Our Investors
We strive to provide investors a reasonable return on their investment, based on consistent financial growth in the marketplace and consistent financial results. We take a long-term view and make appropriate investments to strengthen our brands, develop our capabilities and pursue new opportunities. We seek healthy year-over-year growth and report honest, transparent and timely financial results. We regularly conduct web-based quarterly conference calls to provide updates to analysts and investors, and we broadcast our annual shareholder meeting on our website. Knowing the commitment of many investor groups to sustainability, we apply for admission to the Dow Jones Sustainability Index (DJSI) each year. PepsiCo has been named as a member of the North America Index and named a member of the World Index. The DJSI World Index identifies those companies that exemplify leadership in sustainability among the leading 10 percent of the world's top 2,500 companies. The DJSI North America Index identifies those companies that exemplify leadership in sustainability among the largest 600 North American companies.

Our Partners
Our bottlers and other business partners manufacture many of our products. We provide certain needed ingredients and supplies as well as quality assurance and technical assistance. We conduct our business to allow both our partners and PepsiCo to earn a reasonable return and grow together. We work with our partners on sustainability initiatives including resource conservation. Pepsi Beverages North America has a Bottler Sustainability Team whose mission is to advance environmental sustainability in Pepsi-Cola's bottling operations.

Our Suppliers
Our suppliers provide us with the goods and services needed in our business. We buy goods and services at competitive prices, allowing both our suppliers and PepsiCo to make a reasonable profit. We seek efficient suppliers with whom we can work and grow as long-term partners. We especially seek suppliers that are owned by minorities and women. We extend our commitment to sustainability to our suppliers through our Supplier Code of Conduct, Sustainable Packaging Policy and sustainable agriculture practices. In 2008, PepsiCo implemented a global Resource Conservation Outreach Program designed to share resources, tools and expertise in the area of energy conservation with key suppliers. The initial phase of this effort involved reaching out to 12 contract manufacturing partners for Frito-Lay North America and Quaker Foods North America to assist them in developing energy management systems and projects. This program has been very successful and has expanded to include additional contract manufacturers and other key suppliers in 2009.